WSI: Coolest Fall Temperatures to Remain Focused in the Central US

Early Indicators Leaning Cold for the Upcoming Winter

ANDOVER, MA--(Marketwired - August 25, 2014) - WSI (Weather Services International) has issued their latest forecast for the September-November period. The forecast indicates below-normal temperatures will be prevalent in the central US, with above-normal temperatures expected in the western and eastern thirds of the country. The most significant positive temperature anomalies will be again found in the Pacific Northwest. The WSI seasonal outlooks reference a standard 30-year normal (1981-2010).

According to WSI Chief Meteorologist Dr. Todd Crawford: "August has been another relatively cool month across most of the central and eastern US, although we are currently in the midst of what we think will be a brief warmer period as we approach the end of the month. As Labor Day approaches, it appears that the sub-seasonal weather drivers will cycle around so that cooler-than-normal temperatures are favored again, especially across the north-central US. Further, the various models that we use suggest that this will be the general pattern for much of the fall, with the central US at greatest risk for below-normal temperatures. Finally, although much of the data needed to make a successful winter forecast is not yet available, the early indications suggest that a colder winter is favored across much of the central and eastern US. We will continue to integrate the latest data sets ahead of our first official winter forecast map in September."

According to Paul Flemming, Director of Power & Gas at ESAI Power LLC: "In September, moderate temperatures in most regions and cooler-than-normal temperatures across large portions of the Midwest should moderate late-summer demand and help natural-gas inventories close the ongoing deficit to last year's storage levels. Power prices should be moderate in most regions however much warmer conditions are expected in California and the Northwest. Increased probabilities of late-season heat events in California are bullish for power prices in that region."

Flemming added: "In October, shoulder-period load levels at moderate temperatures mean that seasonal temperature shifts will not have much impact on power prices. Load impacts will be overshadowed by generator maintenance schedules. With low seasonal demand, natural-gas prices in the Northeast and Mid-Atlantic region will be soft relative to Henry Hub. Lower demand from the power sector and negligible demand from heating should allow further builds in natural-gas inventories, further reducing the deficit to last year's level."

Flemming noted: "In November, mild temperatures in the Northeast will dampen early-season heating demand for natural gas and will moderate power prices as generator maintenance continues throughout the month in most regions. Some early-season gas demand for heating in the cooler Midwest regions could offset lower demand in the Northeast but the northern portions of the Midwest are projected to be warmer than normal. The generally warmer pattern across the northern tier of the country in November may help to close any remaining natural-gas inventory deficit to last year."

About WSI CorporationWSI (Weather Services International) and Weather Central are the world's leading providers of weather-driven business solutions for professionals in the energy, aviation, insurance and media markets, as well as multiple federal and state government agencies. Together they comprise the professional division of The Weather Company and are owned by a consortium made up of NBC Universal and the private equity firms, The Blackstone Group and Bain Capital.

About ESAISince its inception in 1984, Energy Security Analysis Inc. (ESAI) has been dedicated to monitoring, analyzing and synthesizing information about world-wide energy markets. Tapping the talents of its senior-level staff, ESAI provides clients with unparalleled insight into where the markets have been and where they are headed. ESAI provides ongoing systematic analysis of energy prices in the oil, natural gas and energy markets. For more information on ESAI services, see www.esai.com.